Kindred Group has notified investors that it anticipates a 30% revenue decline in corporate revenues to £247 million, as a result of ‘temporary Dutch market headwinds’ impacting its business.
The Stockholm-listed online gambling group issued a pre-close trading update ahead of its Q1 earnings call on Thursday 28 April, alerting investors of its expected + £100 million slump in revenues.
Since 1 October, Kindred has ceased all customer operations in the Netherlands, adhering to the pre-licensing rules of the Dutch market’s KOA online gambling regime – in which the firm anticipates securing a licence by H1 trading.
Dutch headwinds and tough trading comparatives had been previously cited as factors impacting Kindred’s Q4 2021 trading, which had recorded a 30% revenue decline to £244 million.
“Excluding the impact of the Netherlands, the corresponding decline was reduced to 5% (1% in constant currency) and is primarily a result of the tough comparative period” – read Kindred’s trading statement.
The revenue decline sees Kindred forecast a Q1 2022 EBITDA downturn to £25 million down 76% on like-for-like Q1 2021 results of £106 million.
Undertaking KOA market adjustments, Kindred had previously notified investors that it expected to incur EBITDA costs of £10-to-£12 million related to its temporary Dutch market withdrawal.